Extended Warranties

What to do about a used car problem?

Following the purchase of a used car, you may encounter an issue with the vehicle, such as it needing repairs for a mechanical failure or fault. Depending on your circumstances, this may be covered by a warranty (i.e. that provided by the manufacturer or an extended vehicle warranty provider) or under your legal rights as a consumer.

Warranty

If your used car is still covered under the manufacturer’s warranty policy, which may be up to seven years, you may be able to claim for the repair of the fault under the terms of the warranty.

The policy will set out each parties’ obligations, and the process on submitting a warranty claim, which normally involves booking your vehicle into a main dealer for diagnostics. Following on from this, the main dealer will submit a warranty claim to the manufacturer. If the manufacturer accepts the fault to be a defect, they will authorise a free of charge repair. If they do not agree it is a defect, they will refuse your claim and explain the reasons why.

If your car has been sold with an extended warranty product, or you have chosen to purchase a policy, you may also be able to claim for the repairs. You should check the claims process highlighted by the policy, as well as the coverage provided.

Your consumer rights

You can exercise your legal rights, but you will need to contact the seller (a franchise dealer or independent retailer) who sold you the used car. If you discover your vehicle is of unsatisfactory quality, unfit for purpose, or not as described, within the first 30 days, you can raise this with the seller and ask for your money back. You will be entitled to a full refund.

It is worth noting that satisfactory quality regarding a used vehicle may be subject to what can be expected on a vehicle of that age, mileage, or price. For example, something that is unsatisfactory on a new car, such as the failure of a turbo within a short period after purchase, may not be considered unsatisfactory on a used vehicle if this component had reached the end of its serviceable life at the time the car was bought.

If an issue occurs with a used vehicle after the first 30 days of ownership, the seller has one opportunity to repair or replace your vehicle. Similarly, if a fault occurs within six months from the point of sale, it is presumed that it was there when the car was sold. In this scenario, the burden is on the seller to prove that the issue was not there at the time of sale, but if a fault is discovered outside of this six month period, you will need to demonstrate the issue was there at point of sale, and is therefore of unsatisfactory quality.

If the issue re-occurs following the repair with your existing car, or a fault is discovered with the replacement vehicle, you can ask for a price reduction, which means a partial refund, but you keep your vehicle. Alternatively, you can ask for rejection, which is to return the vehicle and get your money back. Remember, the seller is entitled to deduct a sum for usage, which is usually the miles you have added to the vehicle during ownership.

I have a warranty claim, but a dealership or garage is unable to book my car in before my warranty expires. What can I do?

If you are looking to make a claim on your active warranty policy, but a dealership or garage is unable to accommodate your vehicle to assess the defect or issue being reported before the policy expires, and it is later found that the problem was one that was covered under the terms of the warranty, you will not be liable for any repair costs.

If the claim does not fall under the terms of your warranty, even if the car was seen after the expiry of the policy, you will be asked to cover the cost of any remedial work carried out on your vehicle.

If you are unable to take your car to a dealership or garage prior to the warranty agreement expiring due to them being unable to accommodate your vehicle, it is worth contacting the administrator of the policy to discuss your concerns and possible solutions available.

Before any remedial or repair work being undertaken by a business, it is important that you ask for a quote and confirm your agreement to the cost if you wish to proceed.

The parts that are covered under your warranty agreement is decided by the terms and conditions of your warranty.

Therefore, we recommend you contact your warranty provider, if you are unsure about what is covered under the warranty.

You can find out more about vehicle manufacturer and extended warranties on our dedicated FAQs page.

How do I complain about my car?

If you encounter an issue with your car, it is important to understand who to complain to, and what your rights are as a consumer.

Once you know who your complaint is with, you should inform the business about the problem with your car in the first instance before contacting a dispute resolution provider, such as The Motor Ombudsman.

You must then provide them with a reasonable opportunity to resolve the issue according to their own complaints procedure.

If the business is accredited to one or more of The Motor Ombudsman’s Codes of Practice, you can find out how to submit your dispute here.

There are different types of issues that may be the source of complaints about your car:

How do I complain about an issue with a used car?

If you have bought a used car, and a fault develops within the first 30 days, you may have the right to return it and receive a full refund. After this period, and if there is a problem, you may still be able to get a repair or replacement. For more information about what to do if you have an issue with your used vehicle, and your consumer rights, click here.

How do I complain about an issue with a new car?

If a fault develops after buying a new car, you may able to make a claim under the manufacturer’s warranty, or your consumer rights.

If you have a new car problem, and would like to find out what you can do, click here.

How do I complain about an issue with my car’s servicing or repairs?

There may have been a problem with the work that has been undertaken on your car.

For example, if you suspect that the servicing or repairs have not been carried out correctly, you may be entitled to a repeat repair or up to a full refund.

For more information, please click here.

How do I complain about an issue with my car’s extended warranty?

Purchasing an extended warranty for a car offers peace of mind against costly repairs.

However, you may experience issues relating to:

• Making a claim for a wear and tear item, such as brakes or tyres;
• The fact that you may feel the policy may have been mis-sold;
• The fact that you may think the terms of the policy are unfair; and
• The choice of garage used to repair my car under warranty.

Can I choose where my car is repaired under an extended warranty?

The literature from your extended warranty provider should clearly state if there are any requirements for you to have work undertaken through the warranty company’s authorised network or if you can choose where your car is repaired under your warranty. We would strongly recommend that you read all of this information and seek clarification from the warranty provider if you are unsure on any particular point.

We also advise that, where possible, you choose a garage that is accredited to our Code of Practice for Service and Repair as then you know they have committed to the highest standards of service.

What can I do if I have a problem with my extended car warranty?

You should always liaise with the business responsible for your issue first – this could be the seller of the warranty or the warranty company.
If your complaint remains unresolved, then you can contact the warranty provider to follow its complaint process.

If you are then unhappy with their response, or you’ve given them a reasonable opportunity to resolve the matter, you can make an enquiry to The Motor Ombudsman who will assess the matter further.

Can I cancel my car’s extended warranty policy?

You will be provided with a cooling-off period, usually 14 days, in which you can cancel your car warranty policy. After that, it is at the discretion of the car warranty company – check your terms and conditions to see if there is a further right to cancel and, if so, whether you’ll be entitled to any refund on your policy. The warranty company should also make it clear if you can transfer the car warranty in the event that you wish to sell the car.

We would always advise that you read through all of the documentation provided at the point of sale to make sure you’re happy with the car warranty policy.

The Motor Ombudsman can only assist in disputes where there is a clear breach of the terms and conditions of the car warranty policy. So, if you think your warranty is mis-sold for example, we may award you a refund for the policy even if there is no right to cancel your car warranty policy – it will depend on the circumstances of your complaint.

Can I complain about a mis-sold car warranty policy?

If you feel that you have been mis-sold car a warranty policy, check to see if you’re still within your cooling-off period – as then you will be able to cancel it.

However, if the cooling-off period has expired, you should notify the seller of your warranty as soon as possible – that could be the warranty company directly or another business, like a dealership. Give them all the reasons for why you think the policy has been mis-sold and then they will investigate your concerns and issue you with a response.

Make sure that, in the first instance, you contact the seller of your policy who may or may not be the warranty company. In some cases, even if a dealership sold the policy, the warranty company may be held liable for the mis-sold car warranty policy but it’s best to get in touch with the seller first.

What can I do about unclear or misleading car warranty terms or wording?

Under the Code of Practice for Vehicle Warranty Products, accredited extended warranty providers must ensure the information they provide is clear and written in plain language. That means terms should not be ambiguous and you should be made aware of your obligations under the warranty – for example, whether you have to get the car serviced for the warranty to remain valid.

If a claim has been declined, and you think this is because the policy terms are unclear, then you should first make the complaint to the warranty company giving your reasons for why you think it is misleading or unclear. If the complaint is not resolved, contact The Motor Ombudsman and they will further assess your dispute.

Want to know more about vehicle warranties?

Take a look at our quick reference guide on some of the most frequently asked questions regarding vehicle manufacturer warranties and extended warranty agreement.

Visit our FAQs page here.

Do I have to pay for diagnostic work on my car?

An extended warranty provider may not cover the costs of diagnostic work and investigation or, if it does, it may not pay straight away as the warranty company will need to establish if the claim falls within the warranty’s terms and conditions.

As such, you will usually be responsible for giving the repairer permission to start any exploratory, investigative or dismantling work and for paying the costs involved if this proves that the warranty company are not liable for the claim.

Some extended warranty policies will pay any reasonable costs of investigations if they are part of a valid and authorised claim – however, you will need to refer to your policy’s terms and conditions for full details of your coverage.

My extended warranty claim was rejected for wear and tear, what can I do?

Most extended warranty policies will not cover breakdowns caused by wear and tear, external damage or issues which existed before you bought the policy – some policies may not cover consequential damage either. You should always read the policy’s terms and conditions to make sure you understand the level of coverage you have.

If your claim is rejected because there hasn’t been a sudden mechanical breakdown, for example because the warranty company thinks the part failed due to wear and tear, it is usually best for you to dispute their view by obtaining independent evidence in the form of an independent technical report.

If the independent technical report supports the reason the claim was rejected, then you would not be able to pursue the matter further. However, if there is compelling evidence to support a sudden mechanical failure, you should present this to the warranty company and see if they change their position on your claim. If you then remain unhappy with their response, and have exhausted the warranty company’s complaints process, you can get in touch with The Motor Ombudsman.

Always remember that a warranty is in addition to your legal rights – so, even if the warranty company has rejected your claim, you may still have recourse against the seller of your vehicle.